DuPont Fabros Expands Credit Facility

DuPont Fabros Technology, Inc. (DFT) – a real estate investment trust (:REIT) – recently increased the volume of its unsecured revolving credit facility from $225 million to $400 million, exercising the accordion feature on it. The move will enable the company to extend its fund availability and thereby fund its development pipeline.

To expand the accordion feature, DuPont Fabros amended this credit facility and increased the facility amount to $600 million from $400 million. Notably, the facility, which carries a one-year extension option, will expire in Mar 2016.

In particular, DuPont Fabros expects use the net proceeds to fully fund its current development project – ACC7 – in the Ashburn Corporate Campus in Virginia. Moreover, the company intends to use the facility amount to finance its other development project too.

For DuPont Fabros, whose borrowings under this facility totaled $60 million as of Jun 13, 2013, the aforementioned moves will help in strengthening its financial flexibility as well as reducing its cost of capital. Therefore, the company will be positioned favorably to continue with its facilities development activity.

Washington, DC-based DuPont Fabros is a leading owner, developer, operator and manager of wholesale data centers. As of Mar 31, 2013, the company had 10 data centers spanning a total gross area of 2.5 million square feet across 4 major markets in the U.S.